Zinc social inventories shrank 1,100 mt on week

SHANGHAI, Jan 22 (SMM) – Zinc inventories in China fell this week, with stocks in Shanghai and Tianjin decreasing relatively sharply.

SMM data showed that social inventories of refined zinc ingots across Shanghai, Tianjin, Guangdong, Jiangsu, Zhejiang, Shandong and Hebei decreased 4,100 mt in the week ended January 22 to 141,700 mt. The stocks fell 3,000 mt from Monday January 18.  

Stocks in Shanghai decreased as downstream restocked when zinc prices, which drove the demand. In south China's Guangdong, shipments and arrivals were basically on a same level, prompting stocks to fall slightly. Stocks in Tianjin dropped as the transaction prices were low with decreased arrivals at smelters, and the downstream restocked in batches before the holiday.

Stocks across the three major trading hubs (Shanghai, Tianjin and Guangdong) fell 3,400 mt this week, after a 3,100 mt decrease last week.